Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit):

Sitka Industries uses a cost system that carries direct materials inventory at a standard cost. The controller has established these standards for one ladder (unit):

Standard Quantity x Standard Price = Standard Cost
Direct materials 3 pounds $4.40 per pound $13.20
Direct labor 2.00 hours 12.00 per hour 24.00
Total cost $37.20

Sitka Industries made 2,900 ladders in July and used 8,600 pounds of material to make these units. Sitka Industries bought 15,400 pounds of material in the current period. There was a $300 unfavorable direct materials price variance.

Enter all amounts as positive numbers.

A. How much in total did Sitka pay for the 15,400 pounds?

Amount paid $???

B. What is the direct materials quantity variance?

Direct materials quantity variance $???? Favorable

C. What is the total direct materials cost variance?

Total direct materials cost variance $???? Favorable

D. What if 9,100 pounds were used to make these ladders, what would be the direct materials quantity variance?

Direct materials quantity variance $???? Unfavorable

E. If there was a $330 favorable direct materials price variance, how much did Sitka pay for the 15,400 pounds of material?

Amount paid $????

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Intermediate accounting

Authors: J. David Spiceland, James Sepe, Mark Nelson

7th edition

978-0077614041, 9780077446475, 77614046, 007744647X, 77647092, 978-0077647094

More Books

Students also viewed these Accounting questions